Dublin’s hotels are too expensive, but they should not have to pay higher VAT, Ireland’s finance minister has insisted.

Paschal Donohoe criticised the “unacceptable” prices being charged by the city’s hotels, but defended his decision not to raise the 9% VAT rate for the hospitality and tourism industry in the Republic’s budget, which was delivered on Tuesday.

He said he was reluctant to increase the figure because of the impact Brexit was already having on visitor numbers to Ireland from the UK.

Mr Donohoe added. “It was a very fine judgment call. The prices are unacceptable. I don’t think they are sustainable.”